At some point, we all overthink our investment choices and I'm bouncing this idea off of the MFO folks to provide me some reasoning/guidance.
In my Rollover where 60% of my retirement assets currently sit, I have a healthy, diversified portfolio. In particular, I spread my Large Cap OEF's across Growth, Blend/Core and Value. I consider style, overlap, cost, holdings, Up/Down, SD and Beta. Currently I have the following - HCAIX (Growth), PRDGX (Blend), HCMAX (Value).
TRP has a new Summit 'program' that kicks off on Nov. 15th and part of that is existing clients with a certain asset level will be able to purchase closed OEF's. I'd like to buy PRWCX and use it as a Allocation/Tactical sleeve in my Rollover. I know it's not considered 'tactical' but Giroux successfully moves to all types of investments beyond the atypical equity/fixed income in a tactical fashion.
Here is the potential overthinking - Should I add this and keep the PRDGX position? The Equity sleeve of PRWCX(50-70%) is typically invested in Core/Blend style box...there are also approx 20 holdings that overlap with PRDGX. I recognize that's the overthinking part and not a big deal but it's something I always review.
Would you use PRWCX as an allocation/tactical play and add it or replace PRDGX? I also own BCOIX and PRSNX as my fixed income investments.
Comments
If I only owned two funds they would be these two that just so happen to work pretty damned well in concert with each other.
Cutting to the chase: If I didn't own PRWCX and now had an opportunity to BUY it, I'd sell anything else I own to do so. If it were me, I'd BUY it and HOLD it as long as Giroux is at the helm. It's really that simple (for me at least).
Aside: I have a smallish CD maturing next week. Proceeds are going to PRWCX.
I'll wait for additional thoughts...
https://www.troweprice.com/personal-investing/campaign/summit-program.html
This is essentially the same basic information that T. Rowe Price sent to customers last month via email, though it adds a lot in its FAQs. What follows is what I read into this preliminary announcement; I could easily be misinterpreting.
- This appears to be the replacement for T. Rowe Price's "Select Client Services", including Personal Services ($250K min) and Enhanced Personal Services ($1M min). That program used to also include Preferred Services ($100K) - see, e.g. footnote 2 on p. 4 here - that TRP quietly phased out a few years ago.
TRP writes (regarding Select Client Services): "The Summit Program is T. Rowe Price’s revamped benefits program that will offer special access to products and services from T. Rowe Price." It doesn't say explicitly that Select Client Services is being discontinued, though that would be the most reasonable interpretation. Alternatively, TRP might allow existing Select Client Services to remain in that program, much as they appear to have grandfathered Preferred Services ($100K) customers after phasing out that tier.
- It is reasonable to assume that eligible assets (i.e. what's counted toward the min) will be the same for old and new programs, though nothing explicitly says that.
- If this Summit program is replacing Select Client Services, will it still provide free M* premium membership?
- The Summit program, like Select Client Services, will have multiple levels. But what they are and what the minimums are remain largely unstated. Though $250K is the min for the Summit program, so that must be the lowest tier. And $500K is likely the min for a tier because that level qualifies you to invest in I class shares.
- "Preferred access" to closed funds doesn't say what that preference is nor does this say that you'll have access to all closed funds. TRP might operate like Vanguard and allow Summit customers to buy, say, $25K of a closed fund per year. TBD.
- We may expect a flurry of activity from Shadow as TRP updates its funds' prospectuses
There could be an entire thread about LC Growth funds (so many).
For Value, I really like PARWX and am invested there. I think when you compare it to HCMAX, you'll find it outperforms in almost every category/time period. Worth looking at.
PRWCX is just a great fund. Wished I owned it and might if it opens up. Until then, happy to stay with FBALX and FMSDX for now. Best to you.
WCMIX (Int'l Gowth) - Great performance, Concentrated
CIVVX (Int'l Value) - True to their Style
PRIDX (Int'l Small/Mid) - One of my favorite funds and categories
GQGPX (EM) - Replaced Harding Loevner 2 years ago
In my other accounts ...I have a Roth IRA with Vanguard and own VWIGX, My 401k has DODFX, BUFIX, ARTJX and ARTYX
Personally, I'm not fond of Causeway Intl Value and am unfamiliar with Buffalo Intl.
I would have purchased PRIDX if it wasn't closed to new investors.
For those interested in WCMIX, the fund will soft-close after 11/30/2021.